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FO Paragraph 1. The following events affected Austin Shq during 2019. 1 Purchased merchandise on account that costs $25,000. The terms of purchases are 2/11,

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FO Paragraph 1. The following events affected Austin Shq during 2019. 1 Purchased merchandise on account that costs $25,000. The terms of purchases are 2/11, 1/45 2 The goods in Event I were purchased FOB shipping point with freight cost of $800 cash 3 Returned $2,000 of damaged merchandise (Event l) to the supplier 4 Sold merchandise that costs $12,000 for $21,500 cash. The terms of sale was 2/11, 1/45. 5 Delivered merchandise to customers in Event 4 under terms FOB destination with freight costs amounting to $500 cash 6 Paid the amount due on its account payable (Event 1) within the discount period. 7 The customer paid the amount due on (Event 4) during the discount period. Required: [7 Marks) a Prepare journal entries to record the events [7 Marks] 2. Details about the account balances and general journal information of Maxwell Company for 2019 are given below. Beginning account balances for 2019 Cash Land Supplies Uneamed Revenue Common Stock Retained Eamings Amount $ 150,000 20,000 50,000 100,000 100,000 20,000 The following are the general joumal information of Maxwell Company for 2019. Maxwell Company General Joumal. 2019 Event Account Titles Debit Credit 1. Ch 30.000 Bano Loan 30,000 2. Orice Equipment CAH 15.000 16.000 3 Account Receivable Service Revenue 33.000 35.000 English (U.S. Normal 11 No Spaci... Heading 1 Heading 2 Title Subtitle Styles 4. Cash 15,000 Account Receivable 15,000 5. Dividends 5,000 Cash 5,000 6. Prepaid Rent 12,000 Cash 12,000 7. Unearned Revenue Service Revenue 50,000 50,000 8. 6,000 Rent Expanse Prepaid Rent Supplies Expense Supplies 6,000 9. 10,000 10.000 Required: [ 13 Marks] b. Prepare T- Account (5 Marka) c. Prepare Trial Balance 3 Marks] d. Prepare Income Statement [2 marks] e. Prepare Balance Sheet 3 Marks)

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